Paysafe Ltd 6-K, filed Mar 2, 2022

Paysafe Ltd (PSFE)

6-K 2022-03-02 For: 2022-03-02

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Added on April 08, 2026

About this 6-K

Paysafe Ltd filed this 6-K on March 2, 2022.

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Exhibit		Description

99.1		Press Release, dated March 2, 2022


Date: March 2, 2022	PAYSAFE LIMITED


	By:	/s/ Ismail Dawood
	Name:	Ismail Dawood
	Title:	Chief Financial Officer


	Three months ended						Years ended
	December 31,						December 31,
($ in thousands) (unaudited)	2021			2020			2021			2020
Revenue	$	371,661		$	370,285		$	1,487,013		$	1,426,489
Gross Profit (excluding depreciation and amortization)	$	223,550		$	226,447		$	887,235		$	891,666
Net income / (loss) attributable to the Company	$	90,296		$	(3,395	)	$	(110,954	)	$	(126,715	)

Adjusted EBITDA	$	105,459		$	95,344		$	443,898		$	425,769
Adjusted EBITDA margin		28.4	%		25.7	%		29.9	%		29.8	%


	Three months ended									Years ended
	December 31,						YoY			December 31,						YoY
($ in thousands) (unaudited)	2021			2020			change			2021			2020			change
Revenue:
US Acquiring	$	166,836		$	152,037			9.7	%	$	649,764		$	610,716			6.4	%
Digital Commerce	$	204,825		$	218,248			-6.2	%	$	837,249		$	815,773			2.6	%
Total Revenue	$	371,661		$	370,285			0.4	%	$	1,487,013		$	1,426,489			4.2	%

Adjusted EBITDA:
US Acquiring	$	46,934		$	43,083			8.9	%	$	167,584		$	179,077			-6.4	%
Digital Commerce	$	84,829		$	76,307			11.2	%	$	351,384		$	319,300			10.0	%
Unallocated Corporate	$	(26,304	)	$	(24,046	)		9.4	%	$	(75,070	)	$	(72,608	)		3.4	%
Total Adjusted EBITDA	$	105,459		$	95,344			10.6	%	$	443,898		$	425,769			4.3	%

Adjusted EBITDA margin:
US Acquiring		28.1	%		28.3	%	(20) bps				25.8	%		29.3	%	(350) bps
Digital Commerce		41.4	%		35.0	%	640 bps				42.0	%		39.1	%	290 bps
Total Adjusted EBITDA margin		28.4	%		25.7	%	270 bps				29.9	%		29.8	%	10 bps


	Three months ended									Years ended
	December 31,						YoY			December 31,						YoY
($ in thousands) (unaudited)	2021			2020			change			2021			2020			change
Revenue:
US Acquiring	$	166,836		$	152,037			9.7	%	$	649,764		$	610,716			6.4	%
eCash (1)	$	99,219		$	105,890			-6.3	%	$	406,185		$	332,941			22.0	%
Digital Wallets (1)	$	87,904		$	96,357			-8.8	%	$	363,760		$	394,501			-7.8	%
Integrated & Ecommerce Solutions (IES) (1)	$	23,488		$	22,774			3.1	%	$	95,582		$	109,265			-12.5	%
Intracompany (1)	$	(5,786	)	$	(6,773	)		-14.6	%	$	(28,278	)	$	(20,934	)		35.1	%
Total Revenue	$	371,661		$	370,285			0.4	%	$	1,487,013		$	1,426,489			4.2	%


($ in millions)	Q1 2022	Full Year 2022
Revenue	$355 – $365	$1,530 – $1,580
Adjusted EBITDA	$95– $100	$440 – $460


Time	Wednesday, March 2, 2022 at 8:30 a.m. ET
Webcast	Go to the Investor Relations section of the Paysafe website to listen and view slides
Dial in	877-407-3037 (U.S. toll-free); 215-268-9852 (International)


($ in thousands)	December 31, 2021		December 31, 2020
Assets
Current assets
Cash and cash equivalents	$	313,439	$	387,616
Customer accounts and other restricted cash, net of allowance for credit losses of $673 and $4,096, respectively		1,658,279		1,376,236
Accounts receivable, net of allowance for credit losses of $8,642 and $25,035, respectively		147,780		117,410
Settlement receivables, net of allowance credit losses of $4,049 and $5,859, respectively		149,852		223,083
Prepaid expenses and other current assets		64,497		63,252
Related party receivables – current		6,492		6,271
Contingent consideration receivable – current		2,842		26,668
Total current assets		2,343,181		2,200,536
Deferred tax assets		21,926		17,669
Property, plant and equipment, net		14,907		18,691
Operating lease right-of-use assets		33,118		40,187
Intangible assets, net		1,202,204		1,524,817
Goodwill		3,650,037		3,481,816
Contingent consideration receivable – non-current		—		125,107
Other assets – noncurrent		1,856		508
Total non-current assets		4,924,048		5,208,795
Total assets	$	7,267,229	$	7,409,331

Liabilities and equity
Current liabilities
Accounts payable and other liabilities	$	211,841	$	231,724
Short-term debt		10,190		15,400
Funds payable and amounts due to customers		1,400,057		1,552,187
Operating lease liabilities – current		8,845		8,969
Income taxes payable		11,041		8,161
Contingent and deferred consideration payable – current		13,673		5,820
Liability for share-based compensation – current		3,360		—
Derivative financial liabilities, current		—		2,651
Total current liabilities		1,659,007		1,824,912
Non-current debt		2,748,178		3,246,871
Related party payables – non-current				195,228
Operating lease liabilities – non-current		28,008		34,540
Deferred tax liabilities		64,886		122,519
Warrant liabilities		35,575		—
Derivative financial liabilities – non-current		—		47,547
Liability for share-based compensation – non-current		6,664		—
Contingent and deferred consideration payable – non-current		17,142		3,742
Other liabilities – non-current		—		969
Total non-current liabilities		2,900,453		3,651,416
Total liabilities		4,559,460		5,476,328
Shareholders' equity in the Company		2,569,764		1,921,705
Non-controlling interest		138,005		11,298
Total shareholders' equity		2,707,769		1,933,003
Total liabilities and shareholders' equity	$	7,267,229	$	7,409,331


	For the three months ended December 31,						For the years ended December 31,
($ in thousands)	2021			2020			2021			2020
Revenue	$	371,661		$	370,285		$	1,487,013		$	1,426,489
Cost of services (excluding depreciation and amortization)		148,111			143,838			599,778			534,823
Selling, general and administrative		127,031			131,103			545,107			465,897
Depreciation and amortization		63,964			65,034			261,372			268,166
Impairment expense on intangible assets		—			6,616			324,145			130,420
Restructuring and other costs		3,562			10,129			25,883			20,640
Loss / (gain) on disposal of subsidiary and other assets, net		28			(13,496	)		—			(13,137	)
Operating income / (loss)		28,965			27,061			(269,272	)		19,680
Other income / (expense), net		64,088			(9,743	)		239,661			(40,805	)
Interest expense, net		(21,536	)		(41,456	)		(165,827	)		(164,788	)
Income / (loss) before taxes		71,517			(24,138	)		(195,438	)		(185,913	)
Income tax benefit		(19,005	)		(21,126	)		(85,110	)		(59,199	)
Net income / (loss)	$	90,522		$	(3,012	)	$	(110,328	)	$	(126,714	)
Less: net income attributable to non-controlling interest		226			383			626			1
Net income / (loss) attributable to the Company	$	90,296		$	(3,395	)	$	(110,954	)	$	(126,715	)

Net income / (loss)	$	90,522		$	(3,012	)	$	(110,328	)	$	(126,714	)
Other comprehensive income / (loss), net of tax of $0:
Gain / (loss) on foreign currency translation		738			7,257			(1,406	)		(1,817	)
Total comprehensive income / (loss)	$	91,260		$	4,245		$	(111,734	)	$	(128,531	)
Less: comprehensive income attributable to non-controlling interest		226			383			626			1
Total comprehensive income / (loss) attributable to the Company	$	91,034		$	3,862		$	(112,360	)	$	(128,532	)


	Years Ended December 31,
($ in thousands)	2021			2020
Cash flows from operating activities
Net loss	$	(110,328	)	$	(126,714	)
Adjustments for non-cash items:
Depreciation and amortization		261,372			268,166
Unrealized foreign exchange loss / (gain)		4,383			(5,450	)
Deferred tax benefit		(96,993	)		(61,142	)
Interest expense, net		74,282			12,492
Share based compensation		101,770			—
Other (income) / expense, net		(232,539	)		21,957
Impairment expense on intangible assets		324,145			130,420
Allowance for credit losses and other		15,102			54,217
Gain on disposal of subsidiary and other assets, net		—			(13,137	)
Non-cash lease expense		9,523			10,562
Movements in working capital:
Accounts receivable, net		(42,592	)		(46,493	)
Prepaid expenses, other current assets, and related party receivables		3,456			18,171
Settlement receivables, net		58,896			37,640
Accounts payable, other liabilities, and related party payables		(25,733	)		(27,767	)
Funds payable and amounts due to customers		(95,890	)		135,037
Income tax payable		(24,386	)		1,150
Net cash flows from operating activities		224,468			409,109
Cash flows in investing activities
Purchase of property, plant & equipment		(5,616	)		(5,386	)
Purchase of merchant portfolios		(63,906	)		(21,047	)
Purchase of other intangible assets		(78,227	)		(60,486	)
Acquisition of businesses, net of cash acquired		(263,520	)		(9,180	)
Net cash inflow (outflow) on disposal of subsidiaries		—			44,877
Net cash flows used in investing activities		(411,269	)		(51,222	)
Cash flows from financing activities
Net cash inflow from reorganization and recapitalization		1,167,874			—
Payment of equity issuance costs		(151,722	)		—
Proceeds from loans and borrowings		2,962,112			270,481
Repayments of loans and borrowings		(3,433,206	)		(361,991	)
Cash outflow on foreign exchange forward contract		(6,504	)
Payment of refinancing costs		(7,077	)
Proceeds under line of credit		600,000			353,867
Repayments under line of credit		(600,000	)		(328,230	)
Payments under derivative financial instruments, net		(48,457	)		(3,907	)
Contingent consideration received		7,942			—
Contingent consideration paid		(7,681	)		(5,689	)
Net cash flows provided by / (used in) financing activities		483,281			(75,469	)
Effect of foreign exchange rate changes		(88,614	)		99,073
Increase in cash and cash equivalents, including customer accounts and other restricted cash during the period	$	207,866		$	381,491
Cash and cash equivalents, including customer accounts and other restricted cash at beginning of the period		1,763,852			1,382,361
Cash and cash equivalents at end of the period, including customer accounts and other restricted cash	$	1,971,718		$	1,763,852


Form 20-F ☒	Form 40-F ☐


Yes ☐	No ☒


Yes ☐	No ☒